Paper Essay Example | Topics and Well Written Essays - 2500 words

Paper - Essay Example Indeed, the premium quality seafood seller had inducted new trawlers in the fleet and replaced old outdated boats with the newly manufactured. In addition, the company also modified its processing system thereby improving the shelf life of its seafood products. The abovementioned initiatives enabled the American seller to ensure better catch and enhance internal productive capacity and efficiency. Demand increased considerably for premium quality Neptune Gold products, yet the inventories stockpiled as supply side had easily offset existing demand patterns. The top management had been expecting that situation would aggravate further because it was not practically possible to bring supply and demand forces in equilibrium by reducing supply or fish catch. In short, Neptune had been facing a grave strategic issue of rising stocks for which no immediate solution was available in the short run. Rita Sanchez’s recommendation about introducing a new low priced brand, for which qualit y would be similar to that of existing Neptune Gold line products, indeed have both positive and negative consequences that will be discussed in detail in the following paragraphs (Kesner and Walters, pp. 2-3, 2005). After analyzing the internal and external business environment of Neptune Gourmet, I would endorse the new strategy regarding the introduction of a new brand, namely, â€Å"Neptune Silver† of premium quality products. It would not really matter if this strategy could lead to short-term migration of customers of premium quality brand toward low-priced yet similar quality seafood products. Indeed, the reason being the fact Neptune could implement it as a short run strategy and reduce its inventory levels in next two months. Obviously, this strategy would not only attract existing customers but also entice new customers who have not yet tried Neptune’s optimal quality seafood. Once,